Baijiu Market – Size, Share, Outlook, and
Opportunity Analysis, 2018 – 2025
Baijiu is a popular and traditional fermented alcoholic drink consumed in China. It is
a clear and transparent drink named after the Chinese word ‘bai’, which means
white. The production of baijiu involves preparation, daqu making, alcoholic
fermentation, distillation, and aging. Sorghum is the main raw material used in the
production of baijiu. Baijiu is different from other liquor because it is contained in mud
pit or clay vessel unlike whisky which are contained in wooden barrels during the
process of sugar conversion and fermentation.
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Market Dynamics
Increasing preference of baijiu among the populace and rising disposable income of
consumers are key factors driving the global baijiu market growth. The drink can be
stored for longer duration without any change in taste. Although, sorghum is a
popular ingredient used to produce baijiu, other ingredients such as wheat, barley,
rice, millet, and corn can also be used. Consumption of small amount of baijiu
reduces the risk of Alzheimer’s disease, reduces the uric acid concentration in
serum, helps to improves serum lipid profiles, decreases platelet aggregation, and
reduces the risk of cardiovascular diseases. According to a report by the U.S.
Department of Agriculture (USDA), China Alcoholic Drinks Association stated that
consumption of baijiu in 2017 grew at the rate of 9% from 2016.
Furthermore, increase in production of wheat and maize is expected to boost the
supply of raw materials for production of baijiu and helps in growth of the global
baijiu market. According to a statistics of Food and Agricultural Organization (FAO),
the global production of maize was 1,060 million tons in 2016 and grew at the rate of
4.9% from 2015. Moreover, the global production of wheat was 749 million tons in
2016 and grew at the rate of 1.7% from 2015.
However, baijiu contains high volume of alcohol (up to 65%) and its excessive
consumption may lead to damage of liver and pancreas, experience of numbness,
and affect the immune and digestive systems.
Market Outlook
Among the crop type, sorghum cereal segment accounted for the highest market
share in the global baijiu market in 2017. This is owing to high preference of
sorghum as a raw material due to its distinct flavor compared to other ingredients
used to manufacture baijiu.
Among the type of flavor, strong-flavor segment held dominant position in the market
in 2017. This is owing to characteristics such as fragrant flavor, soft mouth feel, and
aftertaste of strong-flavor baijiu. The segment is projected to hold dominant position
in the market over the forecast period.
Among region, Asia Pacific held highest market share in the global baijiu market in
2017. The region is projected to maintain its dominance over the forecast period as
China is the largest producer and consumer of baijiu in the world. According to a
report of the U.S. Department of Agriculture (USDA) in May 2018, consumption of
baijiu in China is expected to grow at 12% rate in 2018. China consumed 12 billion
liter of baijiu in 2017.
Since consumption of baijiu is 99% in China and rest 1% is consumed in different
parts of the world. In 2017, Kweichow Moutai Co. Ltd unveiled that the company has
signed a MoU with San Francisco’s Mayor to expand the consumption of baijiu in
America and the company will also export baijiu in 100 other nations.
Key players in Global Baijiu Market
Key players operating in the global baijiu market include, Jiangsu Yanghe Distillery
Co., Ltd, Net Company Inc., Brunsonnet Hubei Daohuaxiang Wine Co., Ltd.,
Kweichow Moutai Co., Ltd, Wuliangye Group, Beijing Shunxin Holding Group, Anhui
Yingjia Group, Gujing Group Co., Ltd, Luzhou Laojiao Co., Ltd, Shaanxi Xifeng
Liquor Co., Ltd., and Sichuan Langjiu Group.
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The research report on Baijiu Market is segmented by Source by Flavor, by Distributional Channel and by Region – Size, Share, Outlook, and Opportunity Analysis, 2018 – 2025

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